Wires

China stocks fall as trade uncertainties rattle nerves

* SSEC -1.0%, CSI300 -1.1%

* HK->Shanghai Connect daily quota used -3.5%, Shanghai->HK daily quota used 0.1%

* FTSE China A50 -1.1%

SHANGHAI/Hong Kong, Sept 23 (Reuters) - China stocks started the week on a soft note on Monday, as uncertainties around Sino-U.S. trade talks dampened risk appetite.

** The blue-chip CSI300 index fell 1.1%, to 3,890.66, while the Shanghai Composite Index lost 1.1% to 2,977.08.

** Washington and Beijing labeled the two-day talks last week as "productive" and "constructive," with the U.S. Trade Representative's office saying that high-level negotiations will take place in October, as previously planned.

** However, investors' appetite for risk assets was curbed after Chinese officials unexpectedly canceled a visit to farms in Montana and Nebraska.

** Trade experts, executives and government officials in both countries said even if the September and October talks produce an interim deal, the U.S.-China trade war has hardened into a political and ideological battle that runs far deeper than tariffs and could take years to resolve.

** Lack of progress in Sino-U.S. trade talks prompted investors to sell shares for the short-term, after a strong rally in the benchmark Shanghai index since early August, Zhang Qi, an analyst with Haitong Securities, said.

** Most China analysts noted further deterioration in Sino-U.S. trade relations would be a key downside risk for the A-share market.

** Major international index providers on Monday progressed the inclusion of the A-share market into their indexes amid Beijing's pledge to further open up its financial markets, with foreign investors pouring money into stocks in the previous session ahead of the move.

** FTSE Russell completed its second tranche of A Share inclusion on Monday, while S&P Dow Jones Indices also added eligible China A-shares accessible via the Stock Connect linking Hong Kong and the mainland.

** "We received positive feedback from index users on our initial tranche of over 1,000 small-, mid- and large-cap China A Shares in June, with many asset managers adjusting their portfolios as part of the inclusion process," said Jessie Pak, Asia Managing Director of FTSE Russell.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.14%.

** At 07:14 GMT, the yuan was quoted at 7.1131 per U.S. dollar, 0.3% weaker than the previous close of 7.0915.

** About 16.81 billion shares were traded on the Shanghai exchange, roughly 89.0% of the market's 30-day moving average of 18.90 billion shares a day. The volume in the previous trading session was 18.21 billion.

** As of 07:15 GMT, China's A-shares were trading at a premium of 29.53% over the Hong Kong-listed H-shares. (Reporting by Luoyan Liu and Noah Sin; Editing by Subhranshu Sahu)